Smart Estate Planning for Retirees: Digital Platforms vs. DIY

By Howard Enders

‭When you think about retiring, saving and investing are probably top of mind. But‬ just as important is planning how your assets – everything you’ve worked for – will‬ be protected and passed on to the people or causes you care about. Some would‬ try to handle this estate planning part themselves, maybe with a simple will kit,‬ hoping it’s enough. But recently, easy-to-use digital platforms have come along,‬ and they’re designed specifically to make this process clearer and more secure.‬

‭Especially if retirement isn’t too far off, these tools can offer real comfort and help‬ prevent headaches for your family later. Let’s look at how doing it yourself‬ compares to using these digital services and what each path means for your‬ financial security and your family’s future.‬

‭Where DIY Estate Plans Often Fall Short‬

Many think estate planning just means writing a will, but there’s more to it if you‬ want to protect your retirement and ensure your long-term wishes are fully‬ covered. To be prepared, you often need other important pieces like powers of‬ attorney (in case you need help managing finances), advance health care‬ directives (for medical decisions), trusts and keeping your beneficiary lists‬ organized and current. It’s easy to miss important details or make mistakes when‬ handling all this yourself. Unfortunately, even small slip-ups in a DIY plan can end‬ up causing problems for your retirement goals and create insecurity for the people‬ you care about.‬

Generic Templates‬

‭For example, one frequent mistake is using generic templates that fail to address local‬ legal intricacies. Estate laws vary significantly by jurisdiction and a template might not‬ capture the nuances of your region’s regulations. Furthermore, a generic form seldom‬ accounts for unique assets such as small-business interests, intellectual property rights‬ or more complex holdings like annuities or multi-tiered investments.‬

Outdated Documents‬

‭Another pitfall arises if you fail to update documents after major life events, like divorce, remarriage or the birth of grandchildren. It’s easy to overlook how these‬ milestones change your financial picture. Retirement planning hinges on clarity and‬‭ proper designation of assets. If your will or trust remains outdated, you may‬ unintentionally leave out new family members or fail to remove people who should no‬ longer be included.‬

Improper Asset Distribution‬

Finally, improper asset distribution can undermine your plans for a comfortable‬ retirement. Too often, those new to estate planning focus on leaving wealth to heirs‬ without considering their own financial security in retirement. Overestimating how much‬ you can allocate could strain your budget or force you to work longer. In short, the DIY‬ route carries a substantial risk of oversight, confusion, and unintentional missteps.‬

Digital Platforms as a Smart Choice for Estate Planning‬

You know how sometimes you want the ease of doing things yourself online but‬ also worry about getting it right? That’s what digital estate planning platforms aim‬ to solve. They’re convenient online tools but also have checks built in to guide you. This is great for retirees who need things done properly without a lot‬ of fuss. The platforms help make sure you don’t miss important paperwork or legal steps.‬ On top of that, many platforms automatically update your documents if the laws‬ change, which means your plan stays correct over time without you having to‬ constantly monitor regulations.‬

Simplicity‬

‭Digital estate planning services also simplify things by giving you one central‬ online place to manage and look over all your important documents. This feature‬ makes it much less likely that critical papers will disappear over time. For instance,‬ the will you put in a bank box or the medical directive you stored somewhere else‬ might be difficult for your loved ones or health care providers to locate. But with a digital platform, you securely store, update and control who sees‬ these documents—only designated family or professionals can access them right‬ away when needed.‬

Accuracy‬

‭Accuracy is another major benefit. Many modern platforms use automated checks to‬ flag inconsistencies. For example, a will contradicting a listed beneficiary on your life‬ insurance. This dual verification process helps you align your financial assets with‬ your legacy wishes.‬

Cybersecurity‬‭

Finally, cybersecurity. Any reputable digital platform adopts robust data protection‬ measures. Encryption and multi-factor authentication guard your sensitive information‬ from unauthorized access. In a DIY arrangement, vital documents may sit unencrypted‬ on a home computer or in filing cabinets, which makes them vulnerable to theft, physical‬ damage or accidental loss.‬

While it’s important to remember that digital platforms streamline the basics, they aren’t a stand-in for bespoke legal or tax advice.

How Your Estate Plan Directly Impacts Your Family

‭Perhaps the biggest plus of getting your estate plan right is lifting a heavy burden‬ from your family’s shoulders. If you’ve made it clear how things should be divided,‬ kept documents current and left straightforward directions, your loved ones won’t‬ have to wrestle with complicated legal hurdles or financial headaches. Instead,‬ they can focus their energy on mourning and being there for one another when‬ they need it most.‬

‭On the other hand, a messy or outdated DIY estate plan can create nightmares for‬ your family. Aside from forcing them into probate court, steep legal fees and disagreements can, unfortunately, shrink the‬ inheritance you planned to leave (might even strain family relationships). Worse‬ yet, if essential documents aren’t done right or are missing (such as the witness language), a court could end up‬ saying you don’t have a valid plan at all. If that‬ happens, state laws would take over and dictate who gets what.‬

‭Choosing Confidence and Security‬

‭Retirement should be a time of security and confidence in the future you have worked so ‭hard to build. A robust estate plan is an essential component of that vision. While some‬ retirees attempt to save money through a DIY approach for very simple estates, such as a joint checking account, the hidden pitfalls and potential‬ for costly mistakes often outweigh any short-term gains. Digital estate planning‬ platforms offer a balanced solution that combines expert guidance, ongoing updates,‬ centralized document management and enhanced security measures.‬

‭In making the choice between DIY and a digital solution, consider the risks of‬ unmanaged paperwork and the emotional toll of legal complications on loved ones. A‬ dependable, well-organized estate plan is a gift to yourself and a final act of care for‬ those you leave behind. Taking advantage of digital platforms is often the most prudent‬ way to guarantee your wishes are honored accurately, responsibly, and with minimal‬ stress for everyone involved.‬

Whichever route you choose, revisit your entire plan regularly or immediately after any major life change to keep your legacy airtight.

About the author: Howard Enders

Howard Enders is COO of The Estate Registry.